NZ Herald

The New Zealand Herald says more than $1 billion has been frozen in mortgage trusts after AXA New Zealand locked up three of its funds. AXA says the suspensions are because of confusion over who will be covered by the Government's deposit guarantee scheme.

Herald political staff report that the Prime Minister was so concerned about Winston Peters' lobbying for businessman Owen Glenn to become honorary consul to Monaco that she told the Foreign Affairs Department to let her know if it happened again.

Dominion Post

The Dominion Post says injury crashes in Wellington are at their highest level in a decade, with proportionally more people hurt on the region's roads than in Auckland.

On the Winston Peters story: the paper says the latest developments raise doubts about his insistence Mr Glenn was not actively considered for the role.

Wellington surgeons have removed a tumour weighing 3.3kg from an East Timorese baby in a life-saving operation.

The Press

The Press says Helen Clark is said to be distancing herself from the fresh scandal enveloping the New Zealand First leader over his dealings with Mr Glenn.

The family of a young woman killed by a car outside a Christchurch party are "devastated and bewildered" that the teenage driver has been sentenced to 10 months home detention.

Murder-accused Liam Reid has accused the prosecution of fabricating the rape and murder charges against him in the High Court in Christchurch.

ODT

The Otago Daily Times quotes a senior policeman as saying a new, more visible, approach to traffic policing in Dunedin city is paying off and it's too bad if people don't like it.

Dunedin almost had the highest temperature nationwide on Tuesday, as a strong northwester blew through the South Island.

The city and airport reached 28 degrees, just below a national high of 29 in Timaru.